Prime Bank Guarantee Scam: How It Works
(with explanatory video below) Some scams have been making the rounds for years; the Prime Bank Guarantee scam aka Prime Bank Instrument Scheme has been around for a while now and proves to be too alluring for many people to avoid. While the lure of easy money is very appealing to most, be aware that there is no such thing. How does the scam work?
Watch the video below to see the Prime Bank Instrument Guarantee Scheme exposed:
The Prime Bank scheme will often be introduced through a friend, inviting you to purchase "bank guarantees" at a discount, to be sold later for an allegedly massive payday to the purchaser. The claim is typically a 20% profit within a month of purchase. You are also required to sign a confidentiality agreement, since this is "exclusive" for the rich. Red flag!
Once you've bought in, you become part of a pool of investors, and they are all invited to invest. You are advised not to get investment advice from a professional, and the scammers go so far as to threaten taking you to court if you try to get an assessment from a professional, as secrecy is the key to this scam.Many people feel comfortable investing in these bank guarantees as they are supposedly secured by a "Letter of Credit"; in other words, a bank-endorsed guarantee that is supported by top-tier world banks, also known as "prime banks".
The scammers will also say the bank guarantees are backed by the International Monetary Fund which gives many investors a false sense of security. Of course, once it is time to cash in your earnings, your money has disappeared along with the "company" handling the investments.
How to avoid the Prime Bank Guarantee scheme:
In a nutshell, there is no such thing as risk-free investing. There are no guarantees in the world of investments. The only safe, risk-free place for your money is in a bank account. A big red flag of this scam is the backers' paranoia about an independent investigation by finance professionals. No legitimate company would ever balk about its' investors seeking third-party advice.
Foreign banks do use bank guarantees, but they are never sold or traded as part of an investment plan. Finally, the International Monetary Fund does not endorse the activities of any bank, even "prime banks", and therefore do not back anything such as bank guarantees.Consult with a lawyer and financial advisor before buying into any investment, and never invest more money than you are comfortable to lose.
If you are victimized by this scam be sure to notify the police and give them copies of all of your paperwork and notes on any phone calls, including time and dates. However, be aware that the chance of recovering your money is slim.
How to report the Prime Bank Guarantee scheme:
Make your family and friends aware of this scam by sharing it on social media using the buttons provided. You can also officially report the scammers to the Federal Trade Commission using the link below:
How to protect yourself more:
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